The consumer-packaged goods industry is always evolving.
In recent years, we have seen a shift from sustainability to value as the primary trend heading into 2023. This shift has been fueled by consumers buying in bulk, shifting to private label products, reducing spending on luxury items, and buying fewer items overall.
The leaders of consumer-packaged goods manufacturers are taking note and are making changes to accommodate this new trend. Let’s take a look at what these changes mean for the industry in 2023.
Value-Focused Assortments and Package Sizes
Coca-Cola Co. is extending its “price ladder” by offering value-focused assortments and package sizes. Many other companies are doing the same in order to remain competitive and make their products more accessible to price-conscious consumers.
Value-focused assortments and package sizes can help businesses cater to customers who are looking for high-quality products at an affordable price point. It also allows businesses to capture more market share by offering different options that can appeal to different customer groups.
Bulk Purchasing and Private Label Products
The trend of bulk purchasing is expected to continue into 2023 as consumers strive to save money.
Bulk purchasing items such as toilet paper, rice, and canned foods are becoming increasingly popular, as they offer a cost-effective way for consumers to stock up without breaking the bank. Furthermore, private-label products are gaining traction in the market due to their lower prices when compared to branded products. Industry leaders should take note of this trend and adjust their strategies accordingly.
Reduction in Luxury Purchases
A recent Ipsos poll also showed that 47% of consumers are choosing less expensive brands than usual, and 33% are buying less overall – indicating a reduction in luxury purchases from buyers who may have previously indulged in high-end items. Companies should take note of this shift towards more economical options in order to remain competitive in today’s market.
Smart Technologies
Businesses in the consumer-packaged goods industry should also prepare themselves for the rising popularity of smart technologies such as voice shopping and artificial intelligence (AI).
Voice shopping has already taken off in major markets like the US and China, with Amazon Echo being one of the most popular devices used for this purpose. AI is also being used increasingly by businesses in order to provide personalized recommendations and targeted promotional offers based on customer data analysis. Companies will need to invest in these technologies if they want to stay ahead of their competitors and maximize their market share.
Conclusion
As we move closer to 2023, it is clear that value is set to dominate the consumer-packaged goods industry. Businesses must adjust accordingly if they wish to remain competitive in this ever-changing market landscape.
By investing in value-focused assortments and package sizes, as well as smart technologies like voice shopping and AI, companies can ensure that they remain ahead of their competitors while providing customers with high-quality products at an affordable price point. Ultimately, embracing these trends could be key to success within the consumer-packaged goods industry by 2023!
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